EDITORIAL: Testing times

Between May and September, while the headlines proclaimed
the demise of the emerging markets, and as riots exploded on
the streets of São Paulo, international investors put
$17 billion into Brazilian government bonds denominated in
reais.

The effect was less stark in Mexico, but no less
counterintuitive. As analysts downgraded their growth forecasts
for the country, foreign investors bought $2 billion worth of
peso denominated...